What is the date a trust is funded?

by Mary Kay Foss

Both of my parents have died, and I received their irrevocable trust. In applying online for the required EIN in order to pay the trust’s taxes, I was asked for the date the trust was funded. What do I put down?

Many taxpayers have revocable trusts during their lifetime that become irrevocable upon the death of the second spouse to pass away. The irrevocable trust must file income tax returns even though during the trust creators’ lifetimes, the income was reported on their individual returns.

When applying for an EIN for the irrevocable trust, the usual date to report for when the trust funded is the date of the second spouse’s death. The first return for the irrevocable trust is filed for the period beginning with the date of the death and ending on December 31 of that same year.

It’s possible that the trust will report income but not owe any taxes because of expenses and distributions. Check with your attorney or CPA for more nuances of tax reporting by an irrevocable trust.

Mary Kay Foss, CPA, is a director at Sweeney Kovar, LLP, in Danville. You can reach her at  (925) 648-3660.

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